Plot the aggregate consumption function for eastlandia

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Reference no: EM131530616

Question: From 2009 to 2014, Eastlandia experienced large fluctuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future disposable income did not change. The accompanying table shows the level of aggregate consumer spending and disposable income in millions of dollars for each of these years. Use this information to answer the following questions

a. Plot the aggregate consumption function for Eastlandia.

b. What is the marginal propensity to consume? What is the marginal propensity to save?

c. What is the aggregate consumption function?

Reference no: EM131530616

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